NEW YORK -- Sloan's Supermarkets here said last week it will acquire and remodel 29 Sloan's and Gristede's stores that are controlled privately by Sloan's chairman John A. Catsimatidis.
e change for the company, to Gristede's Sloan's Inc. and an increase of common stock from 10 million to 25 million shares.
As a result of the merger, Sloan's will operate a total of 43 supermarkets and a health and beauty aids store.
The transaction was valued at $40 million. Catsimatidis and an entity controlled by him will receive an aggregate of $36 million in market value of the company's common stock, Sloan's said. In addition, Sloan's will assume up to $4 million in liabilities.
At the closing of the transaction, Sloan's said it will obtain a $25 million credit facility from a group of banks for store remodeling and expansions, repayment of outstanding bank debt and working capital.
Catsimatidis told SN the most dramatic improvement will be seen in the deli department. The remodels are expected to be completed within the next 12 months, at which time the Sloan's stores will most likely be rebannered as Gristede's.
In addition, he said some Sloan's stores may be converted to a drug store format.
"[The acquisition] permits us to undertake a planned remodeling and expansion program which supplies the means for Gristede's Sloan's to meet our customers' needs as we approach the 21st century."
Catsimatidis said he owns "about seven" other supermarkets, but that he had not decided whether to sell them to Sloan's or to a third party.